The Impact of World Sugar Economy Toward Sugar Largest Exporters and Importers
23 Pages Posted: 22 Jun 2015
Date Written: June 18, 2015
The world sugar economy has changed a large amount within a less of century because of economic and politic situation in the country which may transform an exporter to be importer. However, there are several factors may influence the transformation and those are forecasted to see how far those affect the sugar exporters and importers. To comprehend world sugar economy in details, there is a need to make a research to see the impact of the situation of world sugar economy from the theory of agricultural economics’ perspective. Time series data of 1983-2013 has been utilized through econometric method and technique and it run through SAS version 9 tool.
The result says, world sugar price is not affected by world sugar export, even sugar import may influence world sugar price. World sugar price also doesn’t affect to either world sugar export from sugar exporters and importer. In Brazil, world ethanol price is also not significant to influence its sugar export, even it seems sugar and ethanol compete each other. Variable of sugar production in each country supports its sugar export variable, especially for largest sugar exporters. However, sugar domestic demand thoroughly influences to the export of each country. Last year sugar export is correlated with current sugar export. Domestic sugar demand in EU doesn’t influence sugar import of EU, while in USA it does. The experience of sugar import in previous years do influence the current sugar import. Indonesia should be aware of continuity of sugar import.
Keywords: world sugar economy, world sugar importers, world sugar exporters, sugar
JEL Classification: C32, C51, E66, F47, Q11, Q17
Suggested Citation: Suggested Citation